StarCompliance reveals key findings from its second annual crypto and compliance survey
Findings highlight the need for clearer guidelines, as well as greater use of guidelines and software solutions
ROCKVILLE, Md., 27 September 2022 /PRNewswire/ — StarCompliance (“Star”), a leading provider of employee compliance technology solutions, today released the key findings of its second annual Crypto and Compliance Survey, which examined how financial markets firms approach employee crypto trading compliance. The survey was conducted to build awareness and provide greater clarity around the monitoring of employee transactions and holdings of crypto assets.
The results show that across the total population of firms surveyed year-on-year, 37% now have an employee crypto trading policy in place, while another 31% intend to put such a policy in place this year. Companies that do not plan to establish such a policy in 2022 indicated that they would implement policies in accordance with regulatory guidelines once the guidance is officially put into effect.
“As the use of crypto and digital assets continues to increase, companies must place greater emphasis on monitoring and tracking employees’ crypto transactions and holdings, to ensure they meet regulatory standards set for securities,” said Will Haggerty, product director at Star. “With the publication of the results of our Crypto & Compliance Survey, we hope to clear up some of the confusion that remains over which digital assets are considered securities and which are not. We also hope to guide firms on crypto implementation. – best practices for trade compliance.”
The following are key findings from the Star Second Annual Crypto & Compliance Survey:
- More than half (57%) of respondents estimate that their employees invest less than 25% of their marketable assets in crypto. However, 39% did not know how much of their employees’ marketable assets are actually invested in crypto.
- The majority of respondents (63%) identify Millennials as the generation of employees who transact the most with digital assets. This is probably because Millennials are the first “digital natives”, i.e. those for whom digital assets are not perceived as radically different from traditional assets.
- 60% of respondents expect formal regulation and guidance on employee activity for crypto asset trading within the next 18 months, with a small subset (12%) not expecting regulatory guidelines to be implemented anytime soon.
- The number of firms reporting that they are “Unconfident” in their understanding of how employees trade cryptoassets has decreased 13% from 2021. However, more than 40% of respondents still lack confidence in their understanding of the scope of the activity. This indicates that there is still work to be done when it comes to improving monitoring of crypto trading.
Star’s Crypto Pre-Clearance software solution enables firms to monitor the cryptocurrencies their employees trade, taking the first step toward preventing potential conflicts related to such activity. The software’s capabilities include the pre-clearance of trade requests: allowing employees who want to trade and sell crypto to easily do so while the business gains visibility into this activity.
Find a further overview of the findings in the survey here.
Star staff will take a deep dive into the survey results – and provide guidance on how firms can prepare for compliance – at the company’s Synergy ’22 events in both London (September 27) and Washington DC (October 23-25). There are still places available. Learn more here.
About StarCompliance
StarCompliance is the world’s leading provider of compliance technology solutions. Trusted globally by forward-thinking companies in 114 countries, Star’s future-ready compliance platform delivers the on-demand configurability, multi-jurisdictional integrity and actionable intelligence you need to monitor for conflicts, meet regulatory obligations and mitigate risk. Compliance no longer has to be complicated. Check out Star’s intuitive, simple UX and give your employees the multi-layered protection they need to comply with the trust. www.starcompliance.com
SOURCE StarCompliance
